If chain-weighted increases in real GDP for 2002-03,2003-04,2004-05,2005-06,and 2006-07 are 5%,4%,2%,1%,and 3% respectively,and nominal GDP in the 2002 base year is $6244.4 billion,then chain-weighted real GDP for 2007 is

Question

Quizplus · Accepted Answer

To find the chain-weighted real GDP for 2007, we start with the nominal GDP in the base year (2002) which is $6244.4 billion. We then apply each year's growth rate successively to find the value for 2007. For 2002-03: $6244.4 * 1.05 = $6556.62 billionFor 2003-04: $6556.62 * 1.04 = $6818.88 billionFor 2004-05: $6818.88 * 1.02 = $6955.26 billionFor 2005-06: $6955.26 * 1.01 = $7026.81 billionFor 2006-07: $7026.81 * 1.03 = $7235.6 billionTherefore, the chain-weighted real GDP for 2007 is $7235.6 billion.

If Chain-Weighted Increases in Real GDP for 2002-03,2003-04,2004-05,2005-06,and 2006-07 Are